Five Tax Tips
A $100 tax credit per child is allowed on your 2014 North Carolina individual return if your adjusted gross income is less than $100,000. In 2014, the federal government also allows a $1000 credit, with some income limitations. If you missed this in preparing your own return, that mistake alone would go a long way in helping to pay us to prepare your return.
Home Sale Exclusion
You no longer have to roll over gains on sale of principal residences. Married taxpayers filing jointly are generally allowed a $500,000 exclusion for homes sold after 5/9/97 if held and used for at least two years. If held less than two years, you still may be eligible for a partial exclusion.
Currently, there are two credits and one deduction that may be available to taxpayers with children in college. Also, taxpayers may set up a Coverdell Education Savings account (formerly known as an Education IRA) or a Qualified Tuition Program (SS529 plan) to assist in paying for education. In addition, some college loan interest may be deductible. These rules are complex and phase out with income, so call us for details.
Section 179 Expense
In 2014, you can deduct up to $25,000 of personal business property and equipment instead of depreciating it over time.
- Hire Your Children
If you own a business, consider hiring your child as an employee. Just be sure your child does a real job at a fair salary.
This information is for general purposes and is not intended as specific advice for any individual. Before acting on any advice, consult us as your CPA.